The Taiwanese tea leaf industry encounters the low-price competition from other countries, because of open markets. The government cannot protect its domestic industry by implementing the tariff policy. The globalization of free trades causes the domestic economy with a small scale to inevitably fluctuate with the international economy.
Due to mutable international markets, the tea leaf industry in Taiwan starts to transform export-focus into the focus of domestic demands. The sole traders become the mainstream of producing tea leaves in the country. The tea policy aims to increase farmers’ economic revenues and multiply the added value of selling tea leaves domestically. The development of industrialized tea industry is abandoned, and the industry is not export-oriented any longer, ergo. However, it is the rich Taiwanese society that bolsters the domestic sales. Voluminous cheap tea leaves give a strike to production of domestic cheap tea leaves. The industry in Taiwan has existed for more than one hundred years and undergone many shifts. The quality of imported cheap tea leaves cannot be substituted for Taiwanese tea leaves. Nonetheless, both the international economy and trades and varying domestic demands possibly leave the Taiwanese tea leaf industry in a hardship.
95 percent of trades, ranging from traditional goods to agriculture products from around the globe are under regulations of WTO. Taiwan officially became one of the members in WTO in 2002. Also, ECFA officially took effect on January 1, 2011. Taiwanese tea farmers bear considerable impacts. To be consistent with efficiency and acceleration, the hot issue is to understand how to satisfy consumers.
The research adopted the in-depth interview with T to realize the outlook of T’s operational strategy. The study aims to help T develop well by providing suggestions, based on the drawbacks of the strategy. On the foundation of the case, the study expects to offer suggestions for future development of Taiwanese tea leaf industry.